1. Financial Solvency Review & Financial Reports
Free Powerpoint Templates

2. Part 1. Financial Solvency Review of School Districts
Part 2. Review of TEA Financial Reports Available on TEA Website

3. Financial Solvency Review
Texas Education Code (TEC), §
FINANCIAL SOLVENCY REVIEW REQUIRED.  (a)  The agency shall develop a review process to anticipate the future financial solvency of each school district. 
District revenues and expenditures
Student-to-staff ratios
Rate of change in the unreserved general fund balance
Number of students
Adopted tax rate
Independent audit report
Actual financial information for the first quarter

4. Identifying Districts for Review
4 flags can be set:
Student-to-staff ratio
Expenditures exceeding revenues
Actual expenditures exceed budget
Low/declining fund balance

5. Student-to-Staff Ratios
WADA-to-staff ratio and teacher-to-student ratio both used
Considered the best leading indicator(s) of financial problems
Districts divided into groupings based on number of students

6. Teaching Staff

7. Total Staff

8. AISD Ratio Examples WADA / total staff 101,458.428 / 7,479.36 = 13.56
Enrollment / teachers
84,676/ 5, = 14.17

9. Group Averages Under 100 11.71 9.95 8.39 7.13 100 to 249 11.55 9.82
Group (Number of WADA or Enrolled Students)
Mean WADA-to-All-Staff Ratio
85% of Mean WADA-to-All-Staff Ratio
Mean Enrollment-to-Teacher Ratio
85% of Mean Enrollment-to-Teacher Ratio
Under 100
11.71
9.95
8.39
7.13
100 to 249
11.55
9.82
9.48
8.06
250 to 499
11.97
10.18
10.73
9.12
500 to 999
12.35
10.50
11.48
9.76
1,000 to 1,599
11.93
10.14
12.45
10.58
1,600 to 2,999
11.83
10.06
13.52
11.50
3,000 to 4,999
12.05
10.24
14.29
12.15
5,000 to 9,999
12.24
10.40
14.80
12.58
10,000 to 24,999
12.60
10.71
14.88
12.65
25,000 to 49,999
12.75
10.83
15.01
12.76
50,000 and Over
12.99
11.04
15.06
12.80
13.56 Austin better than group average for WADA, slightly under for enrollment to teacher ratio (14.17)– but close definitely not below the 85% threshold

10. Student-to-Staff Ratios
Student-to-staff ratio flag set if ratio —
Less than 85% of enrollment group average
Declined by more than 7%

11. General Fund Expenditures Exceeding Revenues
Expenditure flag set if expenditures exceed revenues by —
More than 6%
More than 4% and more than 3% in the prior year

12. Actual Expenditures Exceed Budget
Measures ability to stay within budget
Flag set if expenditures exceed budget by —
More than 10%
More than 6% and more than 4% in year before

13. Fund Balance
An alert for a rapid depletion in the unreserved general fund balance is specifically mentioned in statute.
In addition, an alert is triggered for districts with a very low or negative fund balance as these districts are clearly struggling with solvency issues.

14. Identifying Districts for Review
Fund balance most important
Districts identified if have —
3 or more flags
Fund balance flag + 1 other flag
Fund balance less than 1% of expenditures
2010 => 30 Districts / 30 Charters

15. First-Quarter Expenditure Survey

16. First-Quarter Expenditure Survey

17. First-Quarter Expenditure Survey

18. First-Quarter Expenditure Survey

19. Review Process
TEC, §   
Districts identified as having problems submit —
Interim financial reports
Staff and student counts

20. Financial Plan
If data confirm problem, district must submit financial plan to agency for approval
Accredited warned if: the district fails to submit a plan . The plan is not approved by the agency.
the district fails to comply with a plan approved by the agency (4)  the agency determines in a subsequent school year that the approved plan for the district is no longer sufficient or is not appropriately implemented.

21. Accredited–Warned Status
If plan not acceptable or not followed, Accredited-Warned status

22. Questions on financial solvency?

23. TEA Financial Reports PEIMS financial reports and data downloads
Audit (balance sheet report)
Summary of Finances (SOF)

24. School Finance Reports

25. School Finance Reports

26. Scroll to Middle of Page

27. PEIMS Financial Reports

28. District Drop-Down

29. PEIMS Financial Report (Revenues)

30. Expenditures

31. New Audit Report (C1 Schedule)

32. New Audit Report (C1 Schedule)
This report has sections for assets, Liabilities and fund balances

33. Liabilities

34. Fund Balances

35. New SOF report – coming soon

36. New SOF

37. Report Selection List

38. District Selection

39. Run-ID Selection
Each time allotments change new record added , can choose html, excel or pdf for printing

40. SOF: HTML

41. SOF: PDF (Consolidated Report)

42. SOF: Excel

43. Cost of Recapture Report

44. Cost of Recapture Report

45. Us